I wasn't sure where on the forum to ask this question, so I chose networking pretty much at random. If this is a mistake, please point me in the correct direction.
To begin with, I'm ignorant as heck about cryptocurrency, so I have been doing a little online reading hoping to clear my head on the subject. Not working too well. I have been curious about where the Bitcoin gets its value. It's obviously not based on any commodity. A machine performs massive numbers of calculations and the owner is 'presented' with a Bitcoin or part of one. As of recently one Bitcoin had a value of ~$49, 000 US dollars.
I also read that Bitcoin mining today uses more electrical power than all of Argentina. Not exactly an energy conservative process if one cares about that sort of thing.
Why? Who pays out $49K for this imaginary Bitcoin? Or can it not be converted to normal currency?
See? I'm lost.
To begin with, I'm ignorant as heck about cryptocurrency, so I have been doing a little online reading hoping to clear my head on the subject. Not working too well. I have been curious about where the Bitcoin gets its value. It's obviously not based on any commodity. A machine performs massive numbers of calculations and the owner is 'presented' with a Bitcoin or part of one. As of recently one Bitcoin had a value of ~$49, 000 US dollars.
I also read that Bitcoin mining today uses more electrical power than all of Argentina. Not exactly an energy conservative process if one cares about that sort of thing.
Why? Who pays out $49K for this imaginary Bitcoin? Or can it not be converted to normal currency?
See? I'm lost.
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